Suppose the upward sloping labor supply curve shifts leftward in a labor market with a single employer (monopsony). What happens to the equilibrium wage and level of employment in the market?
A) Wage and level of employment increase.
B) Wage increases and level of employment declines.
C) Wage decreases and level of employment increases.
D) Wage and level of employment decline.
B
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A creative response to regulations can be described as
A) conforming to the letter of the law but undermining its spirit. B) totally conforming to the law. C) completely ignoring the law. D) none of the above.
Taxation is an important cash flow issue, but it typically does not have a strong impact on the choice of organizational form (such as branch or subsidiary) or the location of an investment.
a. true b. false
In the simplified circular flow diagram, leakage can occur when consumers save some income.
Answer the following statement true (T) or false (F)
Evaluate this argument for a trade barrier: “The U.S. needs protection from cheap foreign labor.”
What will be an ideal response?